Financial Distress and Financial Perfomance: Investigating Moderating Effect of CSR

The Financial Performance variable calculated by Return on Assets has the lowest value of -0.154 percent and the highest value of up to 0.223 percent. The average value of Financial Performance is 0.03617 percent with a standard deviation of 0.071009 percent. This shows that the typical main primary consumer goods companies listed on the Indonesia Stock Exchange in 2019-2020 has a 0.03617 percent positive financial performance.

The Financial Distress variable calculated by ZScore has the lowest value of 1.15 percent and the highest value of 4.564 percent. The average value of Financial Distress is 1.24567 percent and the standard deviation is 0.836816 percent. According to the Altman model's definition, when the Z value surpasses 1.8, the risk of bankruptcy is very low hence, 1.24567 shows that the overall risk of the observation has a low average bankruptcy.

The Corporate Social Responsibility variable calculated by the GRI-G4 Standard has the lowest value of 0.001 percent and the highest value of 0.077 percent. Corporate Social Responsibility has an average value of 0.01457 and a standard deviation of 0.011366. This means that in 2019-2020, the average CSR information published by primary consumer goods companies listed on the Indonesia Stock Exchange is 0.01457 percent of the items needed by GRI.

The Leverage variable calculated by the Debt to Asset Ratio has a value range from 0.113 to 1.925. Leverage has a mean value of 0.48440 and a standard deviation of 0.242635. The Growth Rate calculates the Growth Variable, which has a range of values from -0.645 to 30.772. Growth has a mean value of 0.28061 and a standard deviation of 2.749066. Current Ratio, which is derived by dividing current assets by current liabilities, has a value range of 0.060 to 13.267. The current ratio has an average value of 2.26990 and a standard deviation of 2.223655.

Linear regression statistical testing necessitates the testing of classical assumptions. The data passed the classical assumption test, which comprised the normality test, heteroscedasticity test, multicollinearity test, and autocorrelation test, according to the results.

The first regression equation with F = 15 058 and significant 0.000. The coefficient of determination (Adjusted RSquare) shows the number 0.360. The second regression equation with F = 12.857 and significant 0.000. The coefficient of determination (Adjusted RSquare) shows the number 0.363.

The correlation coefficient explores the degree of relationship between the variables under consideration. Table 2 displays the Pearson correlation values for the variables utilized in this investigation. Leverage and growth rate are the only variables that have a negative impact on financial perfomance. Other elements, have a favorable impact on financial perfomance.

4.3 Hypothesis Testing

The results of multiple regression tests for the first and second hypotheses of this study can be seen in table 2 below: